A trend reversal is when something very popular stops being so and an older idea comes to the forefront again. Traders need to keep up on this. They need to know what is and isn’t doing well at any given time. This explains three things which may hinder a trader’s ability to do this successfully so they can watch out for them.
- Despite what you’ve heard, there are only a number of really good trading opportunities in a given day.
- It’s not every day that we see a catalyst that would push price action in a single direction.
- In times of heightened market volatility, an average trader tends to focus on how many pips he can get from his trades.
“Consistently profitable traders not only focus on their pips, but they also note the event’s impact on the markets and how it affects the bigger picture.”